SEE How Inflation is Crushing You Right Now
Posted April 26, 2021
It truly is an Everything Bubble.
We are now witnessing the greatest asset bubble in history: a bubble in literally everything… fueled by the most aggressive central bank policy ever.
Between March and June 2020, the Fed printed over $1 TRILLION per month. Yes, trillion, with a “T.”
To put this into perspective, this is roughly the same amount of money the Fed printed to fight the Great Financial Crisis and subsequent recession/weak recovery between 2008 and 2016.
Put another way, last year, the Fed accomplished in three months, what took EIGHT YEARS previously.
The Fed was not alone. Globally if you combine all the money printing and stimulus programs, policymakers put out $15 TRILLION last year. And it’s not as if this money went into building roads or useful projects that boosted the real economy or improved quality of life… it was paid out in stimulus payments and other non-productive means.
Since that time, it has become clear that we are entering an inflationary Everything Bubble. It’s getting to the point that the list of inflationary/frothy items is absurd.
Take a Look at the Inflationary Impact…
- Wheat prices are up 30%.
- Soybean prices are up 80%.
- Corn prices have doubled in the last year.
- Lumber prices are up an astonishing 280% to all-time highs.
- The S&P/Case-Shiller National Home Price Index is up double digits, hitting a new all-time high… DESPITE the economy being in recession.
- U.S. Redfin just reported that 45% of U.S. homes were sold for more than their list price, (this is another record).
- The Baltic Dry Index, which measures the cost of shipping is at a 10-year high.
- The Shiller PE ratio, a measure of stock valuations, is at its second highest level in 140 years, with only the Tech Bubble being higher (and only barely).
- The S&P 500 price-to-sales ratio is the highest it’s ever been, even higher than during the Tech Bubble.
Put simply, we are now seeing a bubble in everything. It truly is the Everything Bubble. And when it bursts, the fall-out will be extraordinary.
After all, central banks have already gone NUCLEAR with monetary policy to fight the COVID-19 lockdowns. As I mentioned earlier, the Fed was printing $1 trillion per month for three months straight in 2020.
What is the Fed going to do when this bubble bursts? $1 trillion in QE per month — not just for three months — but for an entire year? More?
And let’s not forget, this is an INFLATIONARY bubble in everything. So, it’s not just isolated to stocks, homes, and things that make people feel wealthier.
No, this bubble involves prices exploding higher in things that people need to survive (food, energy, medicine) and the industries that supply them (shipping, rail, etc.).
So, it’s not as though printing more money will fix this.
If food is unaffordable already based on funneling over $3 TRILLION into the economy in 12 months… What will funneling more money accomplish?
You get my point.
The capital destruction of what’s coming will be measured in the trillions of dollars.
There’s no way to sugarcoat what’s coming. It’s no longer a question of if, but when? It will be bad, but understand it’s not the end of the world. There will be opportunities for those who can see it coming and take action to prepare themselves.
I’ve created a video presentation to help you see how to get prepared. It lays out, in detail, how we got to the point we are at — and, more importantly, the stages in which the collapse will likely unfold — so you’ll know what’s coming. It also offers some tools that could help you navigate the coming collapse.
Editor, Money & Crisis